Allegiant Gold Ltd. has announced a financing and strategic investment of C$4,014,404 from Kinross Gold Corporation, which will promote exploration and development actions at the Eastside property in Nevada. The deal will close with Kinross owning 9.9% of the issued Allegiant shares.
Image Credit: Shutterstock.com/ Billion Photos
The Round Mountain gold mine, which is located across the valley from Allegiant’s Eastside project, is operated by Kinross. Round Mountain is one of the country’s biggest open-pit gold mines.
We are very excited to have Kinross as a strategic partner, given their experience and prominent presence in Nevada, and the relative close proximity of their flagship Round Mountain Mine, which shares many similar geological characteristics to Eastside. Allegiant and Kinross have developed an excellent rapport over the years, and we look forward to a productive and collaborative working relationship with them.
Peter Gianulis, CEO, Allegiant Gold Ltd.
Allegiant has signed a $4,014,414 subscription agreement with Kinross to purchase 10,036,034 units in a non-brokered private placement at C$0.40 per Unit, with each Unit comprising of one general share of the Company and one-half of one Common Share purchase warrant. Every Warrant entitles the holder to acquire one Common Share at $0.70 per share for two years after the closing date, subject to usual adjustments.
Kinross’ investment plan is for the development of a four-member Technical Advisory Committee, with two representatives from each firm. The Technical Advisory Committee will provide advice and direction on the planned core-drilling program at the Original Pit Zone’s high-grade zone (HGZ). Allegiant has promised to devote at least 80% of Kinross’ investment to a work program developed exclusively for the HGZ.
Allegiant and Kinross will engage in an investor rights agreement in connection with the acquisition, which will grant each party customary rights, such as the grant of conventional anti-dilution and equity participation privileges to Kinross. The deal is subject to several conditions, including TSX Venture Exchange approval and is scheduled to conclude on or around March 18, 2022.
Following Kinross’ strategic investment, Allegiant has hired Cormark Securities Inc. as its financial consultant and Stikeman Elliott LLP as its legal representative.
Source: https://allegiantgold.com/